Entergy Texas Inc. sold $300 million of 3.55% first mortgage bonds due Sept. 30, 2049, to finance the construction of the 993-MW Montgomery County Power Station.
Entergy Texas also plans to use proceeds for general corporate purposes, together with other available funds.
Pending the intended use of proceeds, the Entergy Corp. subsidiary said it will invest them in short-term money market instruments or the Entergy System money pool.
Interest is payable semiannually March 30 and Sept. 30 of each year, starting March 30, 2020, according to a free writing prospectus filed Sept. 16.
The bonds have a spread to benchmark Treasury of 128 basis points. The issuance is expected to be rated Baa1 by Moody's and A by S&P Global Ratings.
BNP Paribas Securities Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Regions Securities LLC and Wells Fargo Securities LLC acted as joint book-running managers. Loop Capital Markets LLC served as co-manager.
